Code Section 4982(f)

Code Section	Effective Date	Name of Act	Name of Provision
4982(f)	12/22/2010	Regulated Investment Company Modernization Act of 2010	Excise Tax Exemption for Certain RICs Owned by Tax Exempt Entities

Excise Tax Exemption for Certain RICs Owned by Tax Exempt Entities

Explanation of Provision

The provision adds tax-exempt entities whose ownership of beneficial interests in the RIC would not preclude the application of section 817(h)(4) (regarding segregated asset accounts of a variable annuity or life insurance contract) to the list of persons who may hold stock in a RIC that is exempt from the excise tax. These persons include qualified annuity plans described in section 403, IRAs, including Roth IRAs, certain government plans described in section 414(d) or 457, and a pension plan described in section 501(c)(18).¹⁹¹⁶ Also, another RIC to which section 4982 does not apply may hold stock in a RIC exempt from the excise tax.

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